A loan is required for almost every major purchase in life – you can save a lot, but the enormous costs that can arise when buying a property or a car can rarely be financed in cash by strict savings. Of course, if you want to take out a loan, you have no interest in paying more than you have to.
Loans are offered by almost every bank
After all they are financed mainly from the lending business in addition to other financial transactions. It also covers interest paid to customers for their investments, because savings or assets in accounts are basically nothing more than a loan that a customer gives to a bank and for which the bank pays interest.
A low-interest loan can be granted in two ways – either by a bank or by the public sector in the form of a low-interest loan linked to certain funding purposes. State / public loans are often not only cheaper, but sometimes even completely free of interest.
However, the range of public, low-interest loans is often very limited: the loan is only used for a specific funding project and is earmarked for a specific purpose. So it must not be used to finance other things. Dedicated, low-interest or interest-free government loans exist almost exclusively for the construction sector, eg. to finance certain modernizations or renovations (often with the focus on energy saving) or to promote energy-efficient new buildings.
However, given the banks’ low-interest loans, some are reluctant to let the state dictate how they should handle the borrowed money and what they should use it for. Only: Low-interest loans that are often advertised do not exist in principle, since they are so-called advertising interest. You can certainly get these, but only if you have a very good credit rating. Generally speaking, this is always the person who basically does not need this loan.
Creditworthiness is primarily dependent on income and Schufa information
The higher the income and the better the Schufa, the better the credit rating. While credit rating is also based on other factors, the salary and amount of financial obligations that existed or were in the past are the main criteria.
A low-interest loan also takes into account the type of income. For example: a self-employed person can have a very high income, but this is not fixed – he cannot guarantee the bank 100% that it will be just as high in a few years. This lowers the credit rating because security comes first (unless there are unencumbered assets that can secure the receivable). A loan for the self-employed, which should be low-interest, is therefore rather the exception.
A senior official, on the other hand, can earn a lot less, but since it is very unlikely that he will lose his income base overnight, this income is much safer from the bank’s perspective. A medium to high-income civil servant has a much higher credit rating as long as he does not have too many financial obligations (other loans).
A low-interest loan can, however, be made with a bank without too much consideration of the creditworthiness. However, these are usually low-interest small loans over sums in the lower four-digit range, which are usually only awarded when additional bank products are concluded, eg Opening a salary account or securities account with a minimum deposit.
The creditworthiness is still important here, but with sums of a few hundred or a thousand euros the bank is often only able to pay, since these types of loans are low-interest, but are quickly repaid and there is also security at the bank through the salary account or a securities account.
Get offers of low-interest loans from other banks
You should first contact the house bank. The bank knows its own financial situation best, while other banks initially see new customers in a more differentiated manner due to a lack of insight into their previous financial possibilities. Nevertheless, you should still compare afterwards, because the house bank can, but does not have to be, the cheapest alternative. The house bank is always a disadvantage when it can be seen that a customer has hardly any money at the end of the month or often overdraws his account. However, a third-party bank can also find out about Schufa.
It is only important in a credit comparison that the effective annual interest rate should always be compared – all other costs and interest rates are basically just a facade, since all costs have to be included in the effective interest rate and only the loan that offers the lowest effective interest rate is favorable,